In the growing popularity of tech, these two terms have increasingly captured the attention of both tech enthusiasts and the general public. And while they are often used interchangeably, they actually represent distinct concepts with an interplay that can almost be considered complex. Let's take a look at what really differentiates Web3 from blockchain.

What is Web3?

In simple terms, Web3 is the entire space that houses decentralised platforms, blockchain systems, DeFi and CeFi, DAOs, etc.

In more complex terms, Web3, often referred to as the decentralised web, envisions an internet where data and power are not controlled by a few large corporations but distributed among a network of users. This decentralised structure seeks to address the issues of privacy, censorship, and ownership that plague the current Web 3.0 internet model.

What is Blockchain?

Blockchain, in simple terms, can be said to be the engine that Web3 runs on. A good illustration is Web3 is the car and blockchain is the engine.

In more complex terms, blockchain, the underlying technology powering Web3, is a distributed ledger system that eliminates the need for intermediaries. It functions as a tamper-proof record book, maintaining a transparent history of transactions that cannot be changed. This decentralised approach empowers users to interact directly without relying on centralised authorities.

Key Differences

Here's a breakdown of the key differences between Web3 and blockchain:

Scope: Blockchain is a foundational technology that can be applied to various sectors beyond the internet, while Web3 focuses specifically on the decentralised future of the internet.

Focus: Blockchain emphasises secure and transparent transaction recording, while Web3 prioritises user control over data and interactions.

Applications: Blockchain is widely used for cryptocurrencies and supply chain management, while Web3 applications include decentralised finance (DeFi), non-fungible tokens (NFTs), and decentralised autonomous organisations (DAOs).

The Integration of Web3 and Blockchain

Blockchain technology serves as the backbone of Web3, providing the framework for decentralised applications and services. By leveraging blockchain's immutability and transparency, Web3 applications can operate without intermediaries, fostering trust and empowering us, the users.

The fusion of Web3 and blockchain has far-reaching contributions for various industries and aspects of our lives:

Finance: Decentralised finance (DeFi) is revolutionising traditional financial services, offering peer-to-peer lending, borrowing, and trading without the need for banks or brokers.

Ownership: Non-fungible tokens (NFTs) are transforming digital ownership, enabling creators to monetize their work and individuals to own unique digital assets.

Governance: Decentralised autonomous organisations (DAOs) are democratising governance, allowing communities to make collective decisions through blockchain-based voting mechanisms.

Conclusion

I hope this has helped shed some light on the distinction between Web3 and blockchain and you can pass the knowledge on to others. To your success!